Home Buying in Bellingham>Question Details

Aj21, Home Buyer in Bellingham, WA

Is it unusual that we have been asked to sign a short sale addendum before hearing any news about our offer?

Asked by Aj21, Bellingham, WA Mon Oct 3, 2011

We made an offer on a short sale condo. The status changed to Pending BU Requested, and a BPO was ordered. We were just sent an addendum to sign and give back, but have not heard anything about the BPO or our offer. Is this normal? We expected to have the bank counteroffer before we were asked to sign an addendum. We are new to short sales...any light you can shed on this would be appreciated!

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Jeez - "normal" and "short sale" are tough to use in the same sentence unless one also uses the word "nothing" as in "nothing is normal in short sales". I'm exagerrating a bit, but not too much.
It's tough to answer your question without knowing what the addendum you were asked to sign was regarding. If it was something that could have or should have been in the original offer but was either missed or perhaps discovered to be needed after the fact - then it's most likely not a big deal to add a "clarification" addendum to the contract. However, I at least would need to know more data before I could give you an opinion as to whether or not the addendum you were asked to sign is "normal".

Best of luck - short sales are a great opportunity but like "most" opportunities they have their challenges - like waiting for an answer.
2 votes Thank Flag Link Mon Oct 3, 2011
First thing is your offer is to the seller, not to the bank. It is the seller who needs to accept 1 offer by signing it. That offer is than sent to the bank for approval with the short sale package. There should be 1 short sale addendum saying the sale is contingent on approval by the sellers lender. Than once the lender gets the short sale package, they may have their own disclosures to add. You need to read what it is before you sign it. At this point the bank hires an appraiser or does a bpo do determine if your offer is at current market value, if your offer is too low, the short sale may be rejected
Web Reference: http://www.ScottSellsNH.com
1 vote Thank Flag Link Mon Oct 3, 2011
I didn't respond to this one initially, because I thought it was generally well answered, but it kept bothering me. It's somewhat inconceivable that the offer wouldn't have contained Form 22SS initially, because so many time limits are delayed by the form. See the 2nd to last paragraph of this piece: http://www.trulia.com/blog/kary_l_krismer/2011/08/the_forms_…

Absent having a Form 22SS the buyer would need to do their inspection immediately after mutual acceptance, and a number of other things wouldn't fall into place (e.g. the closing date). Too bad the buyer didn't come back with more explanation.
0 votes Thank Flag Link Wed Oct 5, 2011
You can see from the varied answers below how confusing this whole issue is. We are not looking at the paperwork, & that is why we can only guess at the answer to your question. Your agent should know exactly what the answer to this question is. If you do not have an agent, then go to a real estate attorney right away & show them the paperwork. No one can really tell you without seeing what it is you are talking about.
0 votes Thank Flag Link Mon Oct 3, 2011
In my experience, a buyer does sign a Short Sale addendum when they first submit their offer. This addendum advises them about what a Short Sale is and what to expect , timeframes, and back up offers being allowed.
There is alot of waiting and no communication sometimes with Short Sales.

Is this addendum a 90SS form? A 90SS is your written acceptance of an offer from the bank.
0 votes Thank Flag Link Mon Oct 3, 2011
It depends on what the addendum says. If it is a 22SS, a NWMLS form it will indicate the amount of time you are willing to be committed to the purchase and whether other offers can be presented to the lenders (among other things) and this should have been part of the original offer if you knew it was a short sale.
If it is another form, read it and decide if the conditions requested are acceptable to you or not.
Are you using your own agent, or the listing agent. Our job in representing you is to provide some understanding of the forms and processes involved. A short sale is one of the more conplicated transactions most agents will deal with. There is a lot to learn and understand. Best of luck.
0 votes Thank Flag Link Mon Oct 3, 2011
Thank you for your question. Generally, you would sign a short sale addendum at the time you signed the offer, but regardless the bank who is considering a payoff less than the mortgage may ask from additional documention from both the buyer or seller during their processing period. The banks typically have the offer processed by verifying the file is complete prior to them assigning it to a negotiator. The more prepared your agent is at the beginning of the process, the faster you will get an answer
Melissa Yardy RE/MAX Preferred Broker Owner CDPR
0 votes Thank Flag Link Mon Oct 3, 2011
You didn't mention what the ADDENDUM says?

If you have no problem with the Addendum, go ahead and sign it, as it is part of the Contract: If the Contract is not signed, then the Addendum is meaningless.

And. NO, this is not usual.

You've got to be patient with a Shortsale and it may come to you. This is a good sign.

Good luck and may God bless you
0 votes Thank Flag Link Mon Oct 3, 2011
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